Oman-based Dhofar Generation Company (DGC) will start generating power from a new natural gas-fired 445MW plant (Salalah II) in January 2018.

A consortium consisting of Japan’s Mitsui & Co, Saudi Arabia’s Acwa Power, and Dhofar International Development and Investment Holding Company were awarded a contract to build a $630m (OMR242.5m) power plant in Salalah's Raysut area in 2015, reported the Times of Oman.

As part of the deal, the consortium has acquired Dhofar Generating Company, which owns and operates a 273MW gas-fired power plant at the adjacent site, from Electricity Holding Company (Nama Holding).

This will take the total power capacity of Dhofar Generating Company to 718MW once the new plant starts operation.

Electricity demand in the Dhofar region is projected to grow by 7% per annum for the next seven years, from an average of 348MW in 2016 to 559MW in 2023, the report added.

However, peak demand is expected to grow at about 6% per year, from 497MW in 2016 to 765MW in 2023, according to a Seven-Year Outlook Report released by the Oman Power and Water Procurement Company (OPWP).